An investor who believes that technology stocks will perform well but does not want to select individual technology stocks might invest in:
A) Spiders.
B) Webs.
C) Cubes.
D) Diamonds.

Question

Quizplus · Accepted Answer

Cubes track the performance of the top 100 companies listed on the NASDAQ stock exchange, many of which are technology companies. This allows investors to gain exposure to the technology sector without having to select individual stocks. Spiders (A) track the S&P 500 index, which includes various sectors beyond technology. Webs (B) and Diamonds (D) are not valid investment options.

An Investor Who Believes That Technology Stocks Will Perform Well